KBR Faces Kickback Claims In $41M Contract Row

Law360, New York (March 16, 2011, 4:39 PM EDT) -- Kellogg Brown & Root Services Inc.’s lawsuit against the U.S. government over $41 million in contract payments backfired Tuesday when the government filed counterclaims implicating the company in a kickback scheme with a subcontractor.

The government lodged its counterclaims in the U.S. Court of Federal Claims, alleging that the contractor’s claim to $41 million in withheld reimbursements was extinguished because of kickbacks from a subcontractor, which was awarded lucrative dining facility contracts at Camp Anaconda in Iraq.

In 2002 and 2003, KBR’s former head of food...
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